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 In 2022, African blockchain startups raised an impressive $474 million, marking a staggering 429 percent year-on-year increase in funding, according to The African Blockchain Report 2022, published by CV VC Africa in association with Standard Bank.

Blockchain venture funding, as a percentage of all venture funding, rose by 6.5 percent globally. In Africa, blockchain funding achieved a record 15 percent share of all sector-agnostic venture funds raised by the continent, more than double the global average, highlighting the continent's continued emergence as a vital blockchain-based startup investment destination, the report says.

The report attributes Africa's blockchain growth to “brilliant mindset, necessity, and impact.” The number of African blockchain deals grew by 12 percent, led by growth in the areas of infrastructure, personal identification, record-keeping, and access to financial independence.

African blockchain companies with notable fund raises include Kucoin, MFS Africa, Scroll, VALR, and Carry1st. Seychelles and South Africa accounted for 81% of African blockchain funding. Nigeria is the leading country in terms of the number of blockchain startups funded, followed by South Africa, Seychelles, and Kenya. The Custody & Exchanges category was the highest-funded in Africa with a 52 percent share, followed by Fintech (24 percent) and Infrastructure & Development (15 percent).
 
“With the potential to create entirely new business models, the African blockchain industry is understandably experiencing rapid growth, with investors readily embracing it,” Gideon Greaves, MD of CV VC Africa, noted. “Africa exhibits a magnetic collaborative environment among developers and organisations in the space. This supportive ecosystem drives the industry. Our Report indicates that the transformative potential of this technology for business operations is undeniable. As investors continue to express confidence in the blockchain industry's sustainability and prospects, we anticipate further growth and investment in Africa in the coming years.”    
        
The report says blockchain demonstrated real-life utility such as in social impact, property technology, tokenisation and NFTs, energy, government, and education.